Small businesses hear crickets after applying for federal loans

GOLETA, CALIF. - Days of uncertainty compounded by hope and confusion over the small business loan application process through the federal government have local owners baffled. And worried.

Robert and Linda Mangione, owners of MasterCare Home Cleaning Services in Goleta, have seen a 50-percent drop in business during the COVID-19 pandemic and ensuing stay at home order.

The family-owned company has more than 30 employees so, the Santa Barbara couple applied for all of the federal loans offered to small businesses. That includes the Small Business Administration's (SBA) Economic Injury Disaster Loan Emergency Advance and the Paycheck Protection Program (PPP). (The SBA forgives the latter loan if all employees are kept on the payroll for eight weeks and the money is used for nearly a handful of costs, including payroll and rent.)

Now, nearly three weeks later, no word from the banks or federal government and no additional funds in the business account.

Payroll comes up tomorrow.

"We just continue to wait to hear from either the SBA or from the bank through the PPP loan to see what our status is," Robert said. "I've called the customer service hotline with the SBA and have gotten really no acknowledgement of the status."

Robert called the CARES Act (The Coronavirus, Aid, Relief, and Economic Security Act) an "oxymoron" -- nice title but appears the federal government doesn't care enough to follow up.

Robert said he believes it would have been more prudent and effective if the funds were allocated and administered at the state level instead

The City of Santa Barbara received information Thursday and released the following notice that afternoon which reads in part:

"The SBA has decided to close the door to further Pay Check Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) distributions. It is anticipated that more money may be approved by Congress for both programs, but this is not known for sure."

For more information about the Small Business Administration, click the following link: SBA.gov

For information about MasterCare Home Cleaning Services, click the following link: mastercarehomecleaning.com